As the Bank of Japan meets on Friday to determine just how much monetary Viagra to pop, notice the odd sense of calm? We managed to make it through both the Democratic and Republican Party conventions without riots. The stock market is in a state of suspended animation following the mountain of credit dumped into the markets to prevent a post-BREXIT crash. But all is not well…
TND Podcast Exclusive: Welcome To Dystopia #24
The Brexit referendum upended markets and sent politicos into a lather. But now that central bankers have been able to restore some semblance of calm to financial markets, you’re being told there’s nothing to see here, move along…
Fact is, there’s no way around a bailout of the European banking system. “Doc” and I broke the story about the bail-in model and published our report on SilverDoctors.com. We noted at the time that the bail-in model would never work, and that it would only serve as a tactical band-aid to apply to specific, small institutions, or small fires burning within specific economies, as we later saw demonstrated with the bail-in of Cyprus bank deposits. Beyond band-aids, the bail-in model isn’t worth a hill of beans. Get ready, European tax payer, because you’re about to socialize banker losses (and Americans, who will be on the hook, over time, with Fed swap lines that are hidden and, if not unwound, add to the Fed’s balance sheet). Welcome to dystopia.
On this episode, Jason and I dive into a free-wheeling discussion about a number of topics. Right at the outset, we address what’s going on with precious metals, post-Brexit, and we place that into the context of the EU banking crisis. We address:
1) Japanese Savers Flooding to Physical Gold http://www.zerohedge.com/news/2016-07…
2) China planning to use more than $300 billion in saver’s pension fund capital for a bailout/Plunge Protection Team of their stock market http://www.zerohedge.com/news/2016-07…
3) Ben Bernanke visits Abe and Kuroda in Japan to discuss a new 10 trillion Yen “helicopter money” plan in next stage of Abenomics.
4) The more than $12 trillion in global government bonds that now have negative interest rates.
5) Bitgold/Gold Money, and the significance of Peter Schiff joining forces with the company (click here for Peter Schiff’s interview with Josh Crumb).
1) Hillary Clinton for getting off the FBI hook;
3) Congresswoman Corrine Brown, advocate for the poor and disadvantaged communities stealing from her charities set-up to benefit those very same constituents (link)
4) Bernie Sanders endorses Hillary Clinton this week! All along, we knew he was a hypocrite. He never attacked Hillary with anything but token jabs, as he discussed big picture economic policy issues, for the most part. Bernie never let Hillary feel any “burn” of any significance regarding her role as a war mongering wench for the military industrial complex and the interests of empire, and he defended her regarding her email scandal, which in turn, is a tacit defense of her involvement in turning Libya and Syria into hell-holes. Progressive Bern-bots loved to speak of Bernie as offering a kinder, gentler foreign policy. But actions speak louder than words, and Bernie never took serious punches at Hillary because he knew he would never get elected, and because in the final analysis, he’s a creature of the Democratic Party establishment, all anyone that couldn’t see that – particularly after he defended Hillary – has simply been deluded with wishful thinking.
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TND Update: Amazingly enough, The Telegraph is reporting that BREXIT is leading in the polls. Even the infamous London bookies are now saying BREXIT is in the lead. These same bookies were the source that the mainstream media turned to for reportage last week that sent precious metals down, and the pound up. Go figure. Click here for live updates. Gold and currency markets are reacting, with gold leaping to just under $1,300 at 4:18 A.M., London GMT. – Eric Dubin
TND Podcast Exclusive: Welcome To Dystopia #23
Jason and Eric discuss the gold and silver markets an how the markets are in a trading range (held down) until the Brexit vote is concluded. If necessary, the vote will be rigged to reflect a “remain” outcome. In fact, this isn’t even a legally binding referendum. Theoretically, the U.K. Parliament can ignore a “leave” Brexit outcome. But there is something to be said for the “consent of the governed.” A growing percentage of the British public is angry. There’s a limit as to how much more pain average people will be willing to tolerate. Even though Brexit will fail – with help from the Powers That Be, including the ruthless exploitation of MP Jo Cox’s murder – this whole debate has elevated nationalist sentiments at the expense of the “globalist” project favored by supranational Western interests. That is a trend that extends beyond England. The PTB will win this battle, but they are losing the war… Slowly, people are waking up.
Jason and Eric also address China’s devaluation strategy, from the August 2015 devaluation that contributed to the ~10% decline in the S&P 500 to the so-called “Shanghai Accord” of 1Q-2016. Chinese savers are responding; they are buying physical gold and silver, and also Bitcoin.
Jason was fired-up. He spotlights a number of current events stories, including:
1) Brazilian Telecom Giant Oi SA files Largest Private Sector Bankruptcy in Brazil’s History (link)
2) Brazil’s state of Rio de Janiero just got a $850 million (US) bailout just weeks before the Olympics from Brazil’s federal government (link)
3) TEPCO Admits Cover Up of Fukushima (link)
4) Erwin Cifuentes wrote an interesting piece for OilPrice.com that was picked up by ZeroHedge, discussing that low oil prices resulting from OPEC’s failure to address output levels could lead to regime change in Venezuela. That scenario is probable; Eric discusses the broader economic and geopolitical context. Jason and Eric also discuss the oil market after the recent recovery in oil prices and if it’s sustainable. What will happen with ongoing bankruptcies? Where will prices trend? How is that going to impact high cost production regions – not just the US shale patch, but impact to North Sea operations?
1) Elon Musk for bailing out his cousins running Solar City with Tesla shareholder’s ~$2.9 billion in capital (link).
2) George Soros & Rothschild for trying to scare people into not voting for Brexit (link)
3) Jean-Claude Juncker, European Council President for hating people voting for Brexit and anyone who disagrees with this powerful bureaucrat (link)
5) SPECIAL: Since we’ve nominated Senator McCain a few times as a first rate scumbag, we thought we’d toss in a potential “Scumbag Remover” for this show; Arizona State Senator Dr. Kelli Ward is calling out Senator McCain for supporting terrorists as part of US foriegn policy. Dr. Ward has guts and integrity. See Eric’s editorial published today for more context: Senator John McCain Empowered Terrorism; Kelli Ward Bravely Speaks Truth As She Campaigns To #RetireMcCain – click here.
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TND Exclusive: Welcome To Dystopia #22
Jason starts off the show by asking Eric about the correction in gold and silver and if he thinks it’s over? Eric thinks the correction is indeed over.
Jason and Eric discuss whether the rich Democrats who are PhD economists at the Federal Reserve are helping keep the stock market propped up to help Hillary Clinton win the election.
Jason and Eric discuss the potential manipulation tug of war in the oil market and also the commodities bull market that has restarted now thanks to inflation picking up again globally.
Obama slipped Bernie through the side door of the White House today. POTUS tried to get Bernie to end his campaign. Sanders says he’s going all the way to the convention. But he will ultimately fall in line. When word of Obama’s endorsement of Clinton hit the newswires, Sanders was in a public meeting with Senator Harry Reid. All Sanders could bring himself to do was look down at the floor, offering no comment to assembled reporters. Video and full story: http://thenewsdoctors.com/?p=686691
1) Maduro for collapsing Venezuela and endorsing Bernie Sanders
2) Hollywood Celebrities who love Venezuela’s economy: https://panampost.com/daniel-raisbeck…
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TND Podcast Exclusive: Welcome To Dystopia #21
Jason Burack of Wall St for Main St and independent financial journalist and managing editor of The News Doctors Eric Dubin are back. During this hour+ long full show, Jason asks Eric about the new correction in gold, silver and miners, and if perhaps Wall St money managers are buying the dips. Jason talks about how gold and silver prices weren’t high enough yet to guarantee a lot of new mines being built.
Eric talks about how the Federal Reserve and US Treasury Department is trying to talk up the possibility of an interest rate hike in June or July to keep the US Dollar Index from collapsing and create demand to buy US Treasury bonds.
Jason and Eric discuss the real economy and how Target, Kohl’s and Macy’s all had very poor revenues and earnings numbers.
Jason and Eric talk about the Deutsche Bank class action lawsuit Jim Sinclair is filing that precious metal miners are joining.
Jason and Eric discuss the total collapse in Venezuela, corruption in Brazil with their president being impeached and PetroBras and if large Wall St banks manufactured the rally in oil and base metals to avoid/delay bankruptcies on those commodity producers to make the banks look more solvent.
1) Mayor of Flint, Michigan- according to whistle blower stealing donation $$$ sent to the water relief crisis and funneling the $$ instead to her PAC http://www.againstcronycapitalism.org…
2) All of US Congress after 65 page manifesto released by whistle blower, Congressman X. X reveals the inner workings of DC politicians and their hypocrisy! http://www.zerohedge.com/news/2016-05…
3) Bernie Sanders supporters who endorse Bernie Madoff as his VP! https://www.youtube.com/watch?v=II-gu…
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So much for our plan to keep the show under an hour! Jason Burack of Wall St for Main St and I cover a heck of a lot of ground in episode 20. Market events and the shift we have seen in the 2016 Presidential Election contest since episode #19 called for expansive analysis.
For the time being, the powers that be have finally been able to put a stop to precious metals buying momentum. Jason and I walk through the past couple of weeks leading up to today’s trading action, with particular emphasis on last Friday’s employment report and how open interest on the Comex has ballooned as speculators and a growing percentage of the conventional financial world are scarfing-up long positions while the powers that be, as reflected by the “commercials” as reported by the Comex Commitment of Traders reports, have been aggressively issuing naked shorts to counter the new tsunami of demand for paper gold.
We recorded after the New York market close on Monday, and it’s nearly midnight and the start of the Tuesday overnight session (Eastern Time). Not surprisingly, gold is attempting to bounce. The regular session closed at $1,265.40, we tested ~$1,260 and are now back over $1263.90 again as I type, the spike high of February 11th. For many weeks, that level was being interpreted as upside resistance by paper traders and targeted by the cartel as it attempted to erase the entire post-Feb. 11th move. Now, predictably, given the new bullishness among paper buyers showing up at Comex, that level is serving as an initial trigger for a bounce.
Odds are, since the paper traders have been the ones behind the lion’s share of the latest bull run, they’ll probably sit on their hands until we get a full test of the 50 day moving average, which would put gold immediately below $1,250, and in my assessment, the highest probability case is that the powers that be will not be able to get much traction below the 50 day moving average. But time will tell, of course. The next major price range where the paper boys will start itching to go long again would be in the low $1,220s level for gold. On a related note, the bounce we have seen in the dollar is going to likely lose momentum and roll over BEFORE 95 on the DXY index.
Therefore, at least when it comes to how conventional financial actors interpreting technical signals are concerned, we probably have a little bit more pain ahead in precious metals before paper bulls are emboldened again to take another swig at the Comex paper gold canteen. When will these paper addicts pay less attention to the Stanley Druckenmillers of the world scarfing down paper gold and more attention to Kyle Bass and his argument that allocated, physical storage is not that expensive and indeed, sane? Who knows… But the paper boys cause the cartel heartburn, and the avalanche of naked short issuance of late isn’t going to extinguish the precious metals bull, and the bull is going to resume its upward romp very soon.
We next turn our attention to placing this action in the context of the stock market and what may happen later this year, as the 2016 election approaches. If you missed Greg Hunter’s fascinating interview with former Clinton insider Larry Nichols, it easily is one of Hunter’s most provocative interviews and well worth a listen: click here. Jason and I dive into some of what Nichols discussed, and take the conversation in surprising directions. The second half of 2016 is going to see a lot of fireworks, one way or another.
1) Deutsche Bank- They told their clients Italian government bonds were safe in 2011 while their firm dumped 90% of the bonds they own! Silly muppets! http://mobile.reuters.com/article/idU…
2) Charles Ortel reveals more crimes/fraud/theft at the Clinton Foundation: http://www.zerohedge.com/news/2016-05…
3) Former Goldman Sachs alumni and current Minneapolis Federal Reserve President, Neil Kashkari, says Fed’s Job Is To “Serve Main Street”. Yeah. Right. http://www.zerohedge.com/news/2016-05…
Thanks for tuning into this episode! – Eric Dubin
This morning, Jason Burack of Wall St For Main St and I interviewed GATA Chairman, Bill Murphy. Last week’s announcement that Deutsche Bank seeks to settle lawsuits concerning the bank’s manipulation of the silver and gold fix is big news. No two ways about it, this news vindicates GATA’s work. Mainstream media producers, business television anchors and mainstream journalists no longer have the “risk-free” option of running with the party line that manipulation only occurs within the bond, currency and equities markets. Deutsche Bank’s settlement relegates that journalistic abortion to the dustbin of history. I say “risk-free” because some of these “powers that be” stenographers will continue to make the case that there’s no manipulation in the precious metals market, despite the fact that an ever growing number of people can see these stenographers for what they are: SHILLS, serving their own personal interest, and their own careers. But I digress…
It’s important to underscore that the lawsuits against Deutsche Bank focus on the manipulation of the fix in London. The manipulation of the fix represents only one of the many tools in the cartel’s manipulation bag of tricks, and it’s far from the most powerful of the tools the cartel employs. The workhorse effort is achieved with the use of High Frequency Trading and the issuance of new contracts to meet periods of rising long interest (you need only look at what was happening last week for a textbook example, as Craig Hemke discussed last Friday). Add on top of these tools the outright dumping of physical precious metal at strategic junctures and suffice it to say, the cartel is a long way from being emasculated. There have been a number of over-the-top headlines in the last couple of days making the case that this news regarding Deutsche Bank is going to translate into an end to manipulation. Reality is more nuanced, as Bill Murphy explains.
I see the potential for a “limited hang-out” scenario unfolding. Deutsche Bank is in precarious financial health, and I believe there’s a possibility that the bank could be split-up, with “bad assets” segregated in a “bad bank” holding company, with losses nationalized. If that scenario were to unfold, it wouldn’t be inconceivable to see the mainstream media spin precious metals manipulation as reality, but only in the backwater of the London fix process, and largely the product of Deutsche Bank leading the effort. If Deutsche Bank morphs into some other entity at some point, the ability to spin a “limited hang-out” is possible.
Precious Metals Market Action
Given the way precious metals and miners have been trading for most of 2016, Bill makes the case that there has been a shift in psychology. One need only look at the way silver traded last week; Bill notes that it’s been years since we’ve seen back-to-back up days without so much as a cartel-induced hiccup. The move in silver since the January low is impressive:
Bill also makes the case that longer-term “smart money” has been accumulating pure-play silver miners, and mining shares in general. Bill offer’s the example of First Majestic’s majestic move:
Tune into the show for Bill’s take on the Deutsche Bank news, the soon to launch yuan-based Shanghai Gold Exchange fix mechanism scheduled to roll-out tomorrow, and for his thoughts on how precious metals will trade in the face of ongoing cartel manipulation.
Obama Reading Yellen Her Marching Orders?
Just what Obama and Yellen discussed isn’t certain, but the participation of foot-in-mouth veep, Joe Biden, strongly suggests that this was no ordinary set of meetings. When Biden is in the picture, that adds a “national security” layer to this onion, given the facilitating role he has played on maters of national security policy. My assessment: the baseline interpretation of Obama seeking to ensure a smooth election season without a nasty economic downturn washing over the United States this summer is likely part of the reason for these meetings. Dr. Ron Paul addresses this thesis, including the possibility that economic rot is so bad that negative interest rates are seriously being considered: click here.
While I do not subscribe to interpretations that last week’s meetings are an indication that a crisis is within days or weeks from washing over the financial markets, these sort of planning sessions do concern the intermediate-term potential for nasty market developments. Jason and I explore this topic following the segment featuring Bill Murphy.
Jason and I also dive into what’s going on with the Japanese yen, the dollar, the magnitude of bad oil loans blowing holes in bank balance sheets and of course, our scumbag nominees. We also dissect the Wall Street Journal’s important report that over 40% of all U.S. student loan debt is impaired or in outright default. Yikes, what a clusterf*ck!
1) Jim Cramer for routinely recommending companies right before they go bankrupt
2) “California Labor Union That Fought for $15 Minimum Wage Now Wants an Exemption” – http://dailysignal.com/2015/09/30/cal…
3) Bernie Sanders and his lawyers for sending a “cease and desist letter” to the seller of “Bernie is my Comrade” t-shirts: http://libertymaniacs.com/products/be…
Thanks for checking out Welcome To Dystopia – Eric Dubin
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Note: Eric Dubin and Jason Burack own shares of First Majestic Silver.
WELCOME TO DYSTOPIA #18
TND Exclusive: Eric Dubin
“Doc” is on vacation. That’s why Silver Doctors is running our recording with GATA’s Bill Murphy, recorded last Tuesday. Jason Burack and I have your back, however, with the big news for the precious metals industry: PSLV Secondary! We’ll also dive deep into the “Panama Papers,” and you owe it to yourself to read the stories I have linked at the bottom of this article. Seriously. There’s more going on here than what the mainstream media narrative would have people believe. But let’s get to the great news for precious metals.
The Sprott Physical Silver Trust has announced a secondary offering to buy $75 million worth of silver. (link) To be expected, PSLV shares took a sharp dive on Friday, frustrating some. One commenter on The Wall St For Main St YouTube channel noted, “I will double down but this offering killed my return for the year in the PSLV.” The frustration is understandable. I noted:
It’s a little ironic. It’s kind of like taking a bullet for the team. I’m only being half flippant. If past is prologue, PSLV purchases will suck out of the physical market enough silver, at the margin, to eventually send the entire precious metals space higher. In a roundabout way, this secondary could end up meaning that silver would be in the $20s a heck of a lot sooner, for example, and that would benefit you and everyone. The cartel has executed a managed retreat from the depths of hell circa sub-$14 silver, with their new “no mas” line at $16. This secondary is going to make getting through $16 happen, with momentum. The next line in their sand would come at around $18.50 and that would have been hard to get past without a lot of multiple attempts, and the same sort of b.s. we see right now re. $16. We will probably be looking at $18.50+ a heck of a lot sooner, given this secondary. I don’t own any PSLV, but if I did, the 4%+ decline today would bum me out too. Alas, it is what it is. Dilution in the short-term for intermediate-term gains is the way this should work out. We see similar things happen when a smart mining company makes an outstanding purchase. Usually, regardless of how fantastic a deal might be from a strategic point of view, short-term traders usually punish even the intelligent acquisitions.
I’ve asked Sprott about his thought process and what the firm tries to do with these secondaries. I don’t remember which of the interviews this discussion happened, but we talked about it on two Silver Doctors Weekly Metals & Markets Wrap podcasts. I haven’t been watching the PSLV premium over the last month – just been too busy/distracted with other stuff. But I see that it was about 5% yesterday. Today, despite the 4+ percent haircut, PSLV still has a premium over assets of 0.57%.
I know that Sprott has been thinking above 5% – or thereabouts – as the level necessary to launch a secondary. I don’t have inside information, mind you. I just have talked to him enough that I know how he thinks. Take a look at the historical chart of the fund premium over time (chart #2): http://sprottphysicalbullion.com/sprott-physical-silver-trust/net-asset-value/
The fund finally had enough of a premium to launch a secondary and get this show on the road. It will be a good thing. Short-term pain for intermediate-term gain. — Eric Dubin
Precious Metals Outlook:
Precious metals were already firming up this week. The Jr. mining share index, GDXJ, actually turned in an all time high for 2016 trading. Jason and I discuss this as the “tip of the spear” when it comes to sentiment in the precious metals industry. Dave Kranzler’s latest focuses on GDXJ as well, and it’s a funny read: “If The…Dow Went Up 94% In 2 1/2 Months, Maria Bartiromo And Liz Clayman Would Be Doing Naked Cartwheels.” (link)
Going into next week, the Sprott PSLV announcement will send the sector higher still, confounding expectations for a huge and imminent cartel raid. In addition to the near- and intermediate-term outlook that Jason and I discuss, check out the conversation “Doc” and I had with Bill Murphy – click here. I addressed the epic battle in detail in my last podcast write-up as well: BLS BS Triggers “Insane Demand For Silver” – SD Weekly Metals & Markets.
It wouldn’t be a Welcome To Dystopia without “scumbag nominees.” Maybe we should invite Eric Sprott on sometime to poll him on potential nominations. Jason nominated:
1) TSA for wasting $1.4 million on an IPAD app for airport arrows telling you right or left for which line for pat downs or body scanners (how wasteful!)
2) President Maduro of Venezuela- for his communist/Marxist policies and the hyperinflation and murders and corruption that big government is destroying Venezuela.
- The Panama Papers: The People Deceived – Christopher Black
- Panama Papers? Hybrid War, From Palmyra To Panama – Pepe Escobar
- BBC Bias, Brexit, The EU, Bilderberg And Global Government – Steven MacMillan
Thanks for listening! — Eric Dubin, independent financial/geopolitical analyst.
TND Podcast Spotlight: Welcome To Dystopia
Jason Burack of Wall St for Main St and independent financial and geopolitical analyst Eric Dubin welcome special guest Louis Cammarosano of Smaulgld to the Welcome to Dystopia podcast. Louis is a precious metal and real estate expert, who’s career includes teaching, and many years working in the technology industry and as a securities lawyer.
Louis believes the CPM Group and the Silver Institute use incorrect data. He says CPM doesn’t count investment demand in their demand calculations and that the Silver Institute doesn’t properly account for silver ETF holdings. Louis thinks the physical silver market has been in a major deficit for years. The draw-down of gold out of GLD and other ETFs and the nature of ETFs were also discussed.
Louis says investment demand and/or industrial demand for physical metal will force paper prices higher if the manipulators allow it. Addressing supply side dynamics, Louis notes that Mexican silver miners have to increase silver production to pay bills even with low silver prices. He says this will continue until prices rise, or miners go bankrupt because no capital is available to them anymore. Jason says the perfect storm for miners is if physical demand for metal grows, and there’s also supply problems.
Jason then asks Louis about the rally in oil, copper, base metals, etc. Louis thinks it’s not based on fundamentals and almost all short covering.
Besides accumulating physical precious metals, Louis says investors should be on the lookout for bargain dividend stocks of companies that can generate free cash flow and pay a dividend without using debt to pay dividends.
Jason then asks Louis what he thinks the world will look like in 10 years? Louis thinks governments will attempt to nationalize all central banks and even big banks and government will attempt to control all credit issues within its borders.
- Jason nominates the former CEO and COO of the popular charity the Wounded Warrior Project. These former executives paid themselves too high compensation and spent lavishly on parties and events instead of spending money on the recipients the charity was intended for. Less than 60% of the more than $1 billion raised since the charity was started in 2003 went to charity.
- Eric nominates US District Judge George Daniels in New York, who issued a default judgement that Iran must pay $7.5 billion to 9/11 victims’ families. Trouble is, Iran had absolutely nothing to do with 9/11. This may very well be an example of the U.S. “Justice” system used for geopolitical propaganda purposes. Given that Daniels’ “judgement” received almost no Western-based media attention, he deserves elevation to scumbag nomination.
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Jason asks Eric about the price action in gold and gold stocks. Eric believes the bull market in gold is back and it’s very bullish that the gold chart has witnessed the 50 day moving average cross over the top of spot gold’s 200 day moving average because it will help further the piling-on by paper traders accumulating positions in tandem with an already strong physical market. We’re witnessing a “managed retreat,” and Wall St managed money is starting to move into gold, from stocks, bonds, etc.
On the global macro front, Jason and Eric discuss increasing evidence that the global economy slowing down. We also continue to see former high level bankers and policy makers serve-up sober and surprising analysis. The latest: former Bank of England head Mervyn King blamed Europe’s economic travails on deliberate policy choices made by EU elites. This comes as Alan (‘don’t blame me’) Greenspan was flapping his lips this week; see Eric’s recent article, “Greenspan On Market Turmoil And Monetary Policy Distortions Impacting Markets, Business Investment And The Real Economy; Admits ‘Too Big To Fail’ Banks Ongoing Problem.”
Jason and Eric also discuss how Venezuela is going through hyperinflation now, and a collapse of their government and society is underway.
Scumbag Nominees for this show:
1) George Soros for his op-ed in the Guardian blaming Russia and Putin for the European immigration crisis. For further context, see: “Soros (Seriously) Underestimates His Audience By Blaming Putin For EU Refugee Crisis,” by Robert Bridge (click here).
2) Warren Buffett for his recent economic propaganda he put out in his annual shareholder letter. Warren claims the US economy is doing well, kids will have a great life and that all social security payments will be made, no problem.
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